This portfolio explores the concept of global marketing, development of global market, Burger King's expansion, and more. It also discusses the advantages and disadvantages of franchising as an entry mode. Gain valuable insights into the world of global marketing.
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PORTFOLIO OF GLOBAL MARKETING
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EXECUTIVE SUMMARY Marketing is the technique which aids in attracting new buyers and raising sales of company to great extent. In the modern era it is essential for each company to apply great marketing technique so that it can gain competitive advantage. Study highlight development ofThe Burger King at global level. Market of China is evaluated in this report and Trade Related Barriers between UK and China are explained in this study. Report highlights that Franchising is the cost effective market entry strategy which aids the firm in successfully establish itself in new market. But company gets less control over operation hence franchise sometime restrict the firm to work better in the global market. Table of Contents EXECUTIVE SUMMARY.............................................................................................................2 INTRODUCTION...........................................................................................................................3
PORTFOLIO 1.................................................................................................................................4 TASK...............................................................................................................................................4 1. Global Marketing Concept.................................................................................................4 2. Development of Global Market..........................................................................................4 3. Burger King's Development at Global Level.....................................................................5 PORTFOLIO 2.................................................................................................................................5 TASK...............................................................................................................................................5 1.a. Background of BRIC Market: China...............................................................................5 1.b. Assessment of Political Risks..........................................................................................5 1.c. Various Trade Related Barriers between UK and China.................................................6 1.d. Reviewing the Environment............................................................................................6 1.e. Various Advantage and Disadvantages of Entering into China for UK Country............6 PORTFOLIO 3.................................................................................................................................6 TASK...............................................................................................................................................6 1. Overview of Company.......................................................................................................6 2. Various Factors Affecting the Entry in Foreign Market....................................................7 PORTFOLIO 4.................................................................................................................................7 TASK...............................................................................................................................................7 1. Franchise as a Entry Mode.................................................................................................7 2. Advantages and Disadvantages of Franchising..................................................................7 3. Various Benefits of Franchising.........................................................................................8 CONCLUSION................................................................................................................................8 REFERENCES..............................................................................................................................10
INTRODUCTION Global Marketing are basically the strategies adopted by the business to expand their business market at global level and sell their goods and services in the global market. By taking advantages of various differences and finding new opportunities to accomplish the objectives at global level. This report highlights the concept of development of global market. Also various modesofenteringintothenewmarketsforexpansionalongwiththeadvantagesand disadvantages are also mentioned. The internal and external factors such as issues relating to semantic, politics, etc. are also being stated along with their evaluation so that is is easy for the company to accomplish its goals and objectives and progress at global level. PORTFOLIO 1 TASK 1. Global Marketing Concept Development of Global marketing can be done by adopting various frameworks of Hollenson, one of which includes, Glocalisation which is the combination of 'Globalisation' and 'Localisation'. The products and services which are distributed and developed at global level but also accommodated by the local consumer(Schlegelmilch, 2016). It is basically Thinking in a global context and acting in a local context framework. It is quiet expensive and requires a lot of resources but once adopted, it gives long term competitive advantage. For encouraging the local market consumers to use the foreign products and services and to promote them will involve advertisement campaigns,media which is culturally friendly, etc. according to this framework. 2. Development of Global Market The market at International Level has been transformed by emergence of new techniques, practices and strategies.And they are gradually retained and also reinforced by the the organizations to be involved in the market at international level(Eisend, 2015). It is providing the products and services locally with global standards after understanding the needs and demand of customers which will help in development of business. It requires analysis along with development of brand and its value throughself and customer analysis, the strengths and weakness of the company, competitiveness in the global market, etc. By establishing a research and development center, an overall study can be done by the research team about the market and the customers for providing quality products, at reliable
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prices(The Global Leader In Acoustic Technology, Thermal management and fluid Transfer, 2019), so that appropriate strategies and policies can be adopted for developing a competitive edge in the global market. 3. Burger King's Development at Global Level The Burger King's parent are are moving forward for its expansion at international level for increasing profitability and productivity, in the BRIC country China for gaining more advance economic development. As the restaurant is under penetrated it has a wide scope of growing over the local as wll as global market by adopting the framework of Globalization, that is, providing the products with global standard at local markets, to influencing its ultimate customers. Although, the impact of currency movements, and other transactions, it has managed to grow in the global market and increased its overall revenue about approximately % at its global level stores. For competing with the leading brands such as McDonald, Starbucks it is putting continuous efforts by experimenting with the menu and bringing new and innovative variety of fast foods, also keeping in mind its quality and health of customers. Various strategies in relation to expansion and research and development has also been set up for market study and taking appropriate steps for development at global level. PORTFOLIO 2 TASK 1.a. Background of BRIC Market: China It is studied that it is expected that in coming recent years, China will surpass the countries in context of size. But also, it is necessary for the stakeholders and investors to determine the risks and recognize them in relation to the controversies and changing policies by the government of China(Mitchell and Casben, 2017). To grow at a global level market of China, discovery of risks and adoption of proper investing policies is necessary. 1.b. Assessment of Political Risks Political risks is related to the government's interference in conducting business by any foreign company country in their country. In China there is political control at local level of business in even decision making process. The government directs the usage of land and also all the rules and regulations for conducting business are being set up by them. In this, situation, emerging as a new market, is very difficult to cope up with existing rules and also the rules for
entering the market. Currency variation and changes in the interest and inflation rates also affects the business at global level. 1.c. Various Trade Related Barriers between UK and China The manufacturing is relatively low by UK which automatically minimize the barriers and their damage to the goods and services manufactured. UK generally exports machinery and equipment's which are mechanical in nature(UK relatively well insulated from tariff war, 2018). It is found that demand for UK exports is generally low, and US can take place of it gradually, but to compete, UK will provide goods at cheaper rates which will be at its own expense and eventually result in decline of its market. Therefore, it is suggested to reduce the barriers and bring a balance between the costs and the revenues by China and favor the UK market. 1.d. Reviewing the Environment China is the largest manufacturing economy, along with the exporter and importer of goods and services, hence playing a prominent role in trade at international level. The more importance has to be given on the basic structure and health of the economy of China, which growing tremendously(Steenkamp, 2019). To avoid socioeconomic cost, It is advised to China to focus more on development of industries in an advanced manner and reduce the pollution by optimum use of the national resources and also it should develop a team for research and development for sustainable growth at international level. 1.e. Various Advantage and Disadvantages of Entering into China for UK Country Entering any new market has its own advantages and disadvantages in conducting of business in a smooth manner. It helps in gaining theAccess to New Customers, for the UK market and launch their product according to their needs and description will help them grow. As the labor Cost is very low in China it will ultimately help UK toReduce its Costsand expand its business(Advantages and Disadvantages of Competing in International Markets, 2017.). The Political and Economic Riskcan be the major hindrance in growth of the company, as there are various policies and regulations and restrictions set up by the government which causes difficulty in flourishing at global level.
PORTFOLIO 3 TASK 1. Overview of Company Burger King is a hamburger fast food restaurants at multinational level, having its headquarters in Florida. Its majority of the stakes were being acquired in 2010, and the new owner focused on its corporate restructuring through merging(Cheung, 2016). It also initiated in purchasing the agency of advertising for good advertising of its goods and services and also now through online mode it is diversifying its business by expanding its demographic targeting and efficient advertising. 2. Various Factors Affecting the Entry in Foreign Market For entering into foreign market various modes can be adopted such as intermediate mode and hierarchical mode. The Burger King being a large firm with lots of human resource and huge financial incentives, uses the intermediate mode of entry, that is, Franchising(Ashley and Tuten, 2015).There are many external and internal factors which affects franchising, they includes;Technological and Political Changesare the external factors which may create hindrance in growing the business, as the adoption of new technology which becomes obsolete very soon results in major impact on the growth of business. Some of the internal factors affecting the growth and entry areRecruitment and Retention of Employees, as skilled employees are sometimes hard to find and retention through motivation sometimes proves to be difficult sometimes when working overseas(Rao-Nicholson and Khan, 2017).Semantic Issuescan also create difficulty as it is not possible that each and everyone has knowledge about the regional languages of various countries, for which proper training has to be provided to the employees. PORTFOLIO 4 TASK 1. Franchise as a Entry Mode Franchising is a business growth strategy adopted by Burger King for the expansion of its market at global level. It is a contractual relationship between the franchiser and franchisee, and franchisee comes in an obligation to pay the lump sum amount along with the shares from the future profits in form of royalty(Steenkamp, 2017). It can be done through giving license of
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know-how, intellectual; property and using the brand and also usage of rights over selling the goods and services to the franchisee. It is basically done to reduce the risks and investment of capital for doing business overseas(Kalra and et.al., 2016). As the Burger King is allocated at wider level it also diversifies its risks to various targeted geographical markets. 2. Advantages and Disadvantages of Franchising Franchising is strategy for expansion of any business which gives benefits to both the parties to the contract. And hence, it comes with various advantages and disadvantages which have to be considered. This expansion isCost-Effective, as there is no requirement of investment by the franchiser and nor funds have to be arranged in this regard by Burger King. Also, it helps in gettingAdditional Incomes, as the franchisee has to pay royalty, which is to be paid on monthly basis in accordance to the sales done over the month(Franchising Your Business: Advantages & Disadvantages, 2016). Its major disadvantage is that the franchiser, that is, Burger King hasLess Controlover the franchisee, as no changes can be made alone without any agreement and negotiation has to be done accordingly. Legal Actions Proves to be Costly, in case of any disagreement or there is continuous loss in the business, legal action can be initiated which can be proved to be costly as well as decreasing the reputation of the business(Gillespie, 2015). 3. Various Benefits of Franchising The benefits ofFranchising In China by the Burger King are many which includes continuous growth, capital infusion, reducing the risks, etc.Motivated Managementis difficult to gain, despite of various training and sessions, the managers are not motivated towards their work. But here, franchisee that is the owner will be the only manager Therefore, the most motivated person will be the owner, who can help in growing and flourishingthe business at next level(De Mooij, 2018).Innovation and Improved Quality of Operations, as the franchisees are not mere managers, they own the business and put efforts in maintaining the business, and train the employees with key skills for efficient working and find new opportunities to attain global competitive edge. CONCLUSION It is concluded from the above study about the global market and its development by the company. The risks such as political and economic in relation to adopting expansion in China
and the ways to overcome the same with constant efforts are also being mentioned. The ways adopted for better development in the business by doing business overseas by the Burger King. And the entry mode adopted for expansion, the benefits which can be attained by the company such as infusion of capital, low costs of labor which can directly lead the company to gain competitive advantage in the global world.
REFERENCES Books & Journals Ashley, C. and Tuten, T. 2015. Creative strategies in social media marketing: An exploratory study of branded social content and consumer engagement.Psychology & Marketing. 32(1). pp.15-27. Cheung, M. S. 2016. 320-01 International Marketing. De Mooij, M. 2018.Global marketing and advertising: Understanding cultural paradoxes. SAGE Publications Limited. Eisend, M. 2015. International Marketing.Wiley Encyclopedia of Management.pp.1-2. Gillespie, K. 2015.Global marketing. Routledge. Kalraandet.al.2016.ConsumerAttitudetowardsNetworkMarketinginaGlobal Scenario.Intercontinental Journal of Marketing Research Review.4(12). pp.9-14. Mitchell, A. D. and Casben, J. 2017. Trade law and alcohol regulation: what role for a global Alcohol Marketing Code?.Addiction.112. pp.109-116. Rao-Nicholson, R. and Khan, Z. 2017. Standardization versus adaptation of global marketing strategiesinemergingmarketcross-borderacquisitions.InternationalMarketing Review.34(1). pp.138-158. Schlegelmilch, B. B. 2016. Global Marketing Strategy.Management for Professionals. Steenkamp,J.B.2017.GlobalMarketingMixDecisions:GlobalIntegration,Not Standardization. InGlobal Brand Strategy.(pp. 75-109). Palgrave Macmillan, London. Steenkamp, J. B. 2019. Reflections on defining global brands, fragmentation and segmentation, and the emergence of richer brandscapes.International Marketing Review. Online The Global Leader In Acoustic Technology, Thermal management and fluid Transfer. 2019. Online Available Through:<https://www.nelsongp.com/>. UK relatively well insulated from tariff war. 2018. Online Available Through:<https://economia.icaew.com/opinion/november-2018/uk-relatively-well- insulated-from-tariff-war>. Advantages and Disadvantages of Competing in International Markets. 2017. Online Available Through:<https://opentextbc.ca/strategicmanagement/chapter/advantages-and- disadvantages-of-competing-in-international-markets/>.
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Franchising Your Business: Advantages & Disadvantages. 2016.Online Available Through:<https://www.franchiselawsolutions.com/franchising/franchising-advantages- disadvantages/>.